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Yanka [14]
2 years ago
8

In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitec

h stock for $57 per share after 1 year. If you require a rate of return of 16 percent on Hitech stock, how much would you be willing to pay now for a share of the stock?
Business
1 answer:
Andre45 [30]2 years ago
7 0

Answer:

Price to be paid now = $52.89

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>

T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>

Price now  = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16)  + 57/(1.16)= $52.89

Price to be paid now = $52.89

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What are the three aspects of corporate organization according to the economics of organizational architecture article?
Iteru [2.4K]

Answer:

The three aspects of corporate organization according to the economics of organizational architecture article are;

Decision Right Assignments

Reward System

Performance Evaluation

7 0
3 years ago
Cullumber Company uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at De
Anvisha [2.4K]

Answer:

Cullumber Company

The ending inventory is:

= $4,888.

Explanation:

a) Data and Calculations:

Item      Units     Unit Cost     Net Realizable Value   Value of Ending

Cameras:                                                                       Inventory (LCNRV)

Minolta      3            $172                 $152                             $456 ($152 * 3)

Canon       9              140                   170                              1,260 ($140 * 9)

Light meters:

Vivitar      13              130                   100                              1,300 ($100 * 13)

Kodak     16               117                    128                              1,872 ($117 * 16)

Total value of Ending Inventory based on LCNRV =          $4,888

b) The Lower of cost- or net realizable value method of valuing ending inventory determines the value by choosing the lower value between the cost price of the inventory and the net realizable value.  The purpose that is served by using the LCNRV method is that it reflects the decrease of inventory value when it goes below its original cost while at the same time it does not recognize the increased market value when the cost is lower.

4 0
3 years ago
Dave facilitated a hiring committee for his advertising company. Six employees (including two managers) met together to discuss
Roman55 [17]

Answer: Autocratic

           

Explanation: In simple words, Autocratic leadership style refers to a management style under which all the decisions are made by a single person with the ultimate authority. Although, the input from others could be taken into consideration.

In the given case, Dave made a hiring committee to employ new individuals. However the final decision for hiring was to be made by the head of public relations.

Hence we can conclude that the given case illustrates autocratic leadership style.

4 0
3 years ago
The amount a borrower pays for a loan is called
ololo11 [35]

Answer:

Interest

Explanation:

hope this helps<3

8 0
3 years ago
Although True Ion Inc. and One Electro Inc. operate in the same consumer electronic industry, True Ion Inc. has better sales and
Degger [83]

Answer:

The correct answer is B. resource heterogeneity.

Explanation:

The theory of resources and capabilities states that organizations are different from each other based on the resources and capabilities they have at a given time, as well as the different characteristics of the same and that these resources and capabilities are not available to all companies Under the same conditions. This theory allows us to direct the internal analysis towards the most relevant aspects of the social interior of the organization, in relation to the external analysis performed and as a basis for the general strategic approach and subsequent human resources. It is also a tool that allows you to determine the internal strengths and weaknesses of the organization. And according to this theory, the only way to achieve sustainable competitive advantages is through the development of distinctive capabilities.

7 0
3 years ago
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